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Gas for only $2.99

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Charging less puts station in squeeze

Owner says his supplier objects to low pump prices

Updated: Wednesday, 08 Feb 2012, 6:28 PM CST
Published : Wednesday, 08 Feb 2012, 4:43 PM CST

BASTROP (KXAN) - Mo Moghadassi is locked in a strange gas war.

His Mustang Travel Center off State Highway 21 and U.S. Highway 183 at the northern edge of Caldwell County is selling a gallon of regular for $2.99, about a half-buck lower than you'll find most other places.

He loses a little on the gas. But he makes up for it in merchandise sales.

But here's the rub: Moghadassi is hurting the business of a Tiger Tote station a few miles to the south. Johnson Oil owns that station and it's charging $3.39 a gallon. Now Johnson Oil is greatly reducing the oil they deliver to Moghadassi.

He got a obtained a court order on Tuesday instructing Johnson to sell him what he needs. But Moghadassi said the supplier is still cutting him short.

Johnson Oil declined to discuss the matter with KXAN when asked. But Moghadassi said that for six straight days he’s had to close his pumps down because he's out of fuel.

On average, Mustang sells around 30,000 gallons a day. But on Tuesday night, the travel center only received 5,000 gallons which resulted in the station being out of gas for three hours and Wednesday they only received 13,000 gallons.

"I don't have the resources to fight these people. Johnson Oil is huge, I'm not," Moghadassi said. "I don't know what to do. How long can you stay without gas?"

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